On behalf of the Stanford Economic Review Editorial Board, I am pleased to present the eleventh volume, winter issue, of Stanford University’s undergraduate economics journal. Building on our momentum from last year, our publication has continued expanding its global reach over the course of the 2022-2023 academic year. As our readership climbs to new heights,… Continue reading Our Winter 2023 Issue
By Ryan Pak, New York University Stern School of Business -- The decoy effect arises when a firm offers a product that is clearly inferior to another product in order to drive sales of the latter. This phenomenon has been displayed experimentally in many different situations, but remains understudied theoretically. We develop a model of almost rational consumer choice, with a single behavioral tendency — regret aversion.
By Carly Shin, The George Washington University.
This paper investigates the relationship between expert ratings and the restaurant market. Specifically, this paper aims to broaden our understanding of the experience goods markets by looking at the effects of both having an expert-awarded Michelin star and earning or losing a Michelin star on New York City restaurant prices.